4. International student experience and quality outcomes

Overview

4.1Australia attracts students from over 190 countries. This collective diversity and knowledge feeds into education institutions, workplaces, and communities. International students contribute to the multicultural richness of Australian communities, bringing new ideas and different perspectives to the national conversation that shapes the nation.

4.2Regional Universities Network (RUN) advocated the value that universities and regional communities place on the incredible social, cultural and economic contributions that international students provide to Australian communities. Regional Australia is made more vibrant and diverse by welcoming international students, and those that settle regionally following graduation play an important role in narrowing the gap between regional education/skilling levels with metropolitan Australia.[1]

4.3This chapter unpacks student experience by examining living pressures separated into student welfare and safety, accommodation, connection, and integration into Australia. The student experience is defined as a person’s collective interaction, engagement, and development during their time at an education institution. Student experience encompasses both academic and non-academic lived environments.

Student experience pre and post Covid-19

4.4For international students an experience of Australian life as a student can form life-long impressions of Australia as a country, as well as a place of education.

4.5Positive student experiences form the building blocks for enduring people-to-people linkages in the region and internationally. A positive student experience has exponential and often intangible benefits. International graduates with a positive student experience are an incredible asset to Australia when they go back to their own countries and pass on a great message in their home countries about the hospitality and the community of the Australian people.[2]

Once these students have graduated from an Australian university, they retain a deep affection for us for the rest of their lives. I travelled through South-East Asia last week, in Indonesia, Malaysia and Singapore, meeting alumni from all over the world. I am happy to talk about what we've heard about the market soundings and those experiences. We can quite confidently say that, once they join our alumni of 400,000 people living in more than 170 countries, they are a national asset.[3]

4.6Reflecting on its experience travelling with a Western Australian ministerial delegation to Bhutan, the University of Notre Dame Australia further emphasised the influence of an international student’s positive experience on the reputation of Australian states and territories:

… the striking thing was how powerful the reputation of our state and of our universities is. Communities, parents and children themselves and generations of Bhutanese people are choosing Western Australia because they know that, when they've sent previous children or adults to our universities, they've been looked after, they've had a great experience and they've returned home with the qualifications they need. And that is building the reputation of our universities in that community.[4]

4.7A negative student experience can affect students mental health and the student’s ability to achieve good results. Forming early perceptions of a country may influence life decisions further down the track such as choosing countries to study further, live and work in and do business with, in the future.

4.8The Department of Education described how ‘COVID-19 saw a drop in satisfaction with the overall quality of the entire educational experience for international students, going from 75 per cent in 2019 to 67 per cent in 2021.’[5] Interestingly, the Department of Education noted that ‘Australia was falling behind competitors in international student satisfaction prior to COVID-19, presenting a need for providers to strengthen student experience to continue to attract and retain international students.[6]

4.9As referenced elsewhere in this report, the narrow lens of seeing international students as revenue products, is not lost on international students themselves and has a fundamental impact on their student experience.

4.10Council of Australian Postgraduate Associations (CAPA) and National Aboriginal and Torres Strait Islander Postgraduate Association (NATSIPA) observed the following:

At the height of the pandemic, international students in Australia had hoped their choice was worthy of recognition by governments and universities and that they would respond compassionately to this unprecedented crisis. Sadly the response fell short of their expectations leaving many disappointed and treated as 'cash cows'.[7]

Cost of Living

4.11Increases in the cost of living for international students was an issue that was prominently raised at the public hearings. In particular, international students discussed concerns about the challenges of high and rapidly rising rental and transport costs well beyond what students had budgeted on needing to meet.

4.12Ms Inuli Subasinghe, an international student at the University of New South Wales (UNSW), noted that ‘the cost of rent has been at an all-time high recently’ and that with increased demand for housing, ‘it has been difficult for students to find accommodation.’[8] Mr Yinfeng Shen, an international student at the University of Sydney echoed her concerns, noting that some of his friends have been forced to move out when they have been unable to pay rent increases that are double or triple the original amount.[9]

4.13Ms Samanda Mularachchi, an international student at Western Sydney University, emphasised this point further by noting that her rent increased by $110 a week this year and explained that it is ‘almost impossible’ for international students to find housing near their university or placement. She had anecdotally heard from other students who have compromised on their safety to avoid paying high rent:[10]

… given the housing crisis, I know that a lot of international students who came after me have settled for whatever place is easier and cheaper. Even if they are not in a safe neighbourhood, as they can only afford that, they will settle on staying there.[11]

4.14The lack of travel concessions for international students was highlighted by all student participants, as another factor adding to high cost of living pressures (and making international students feel less welcome and inferior to domestic students). Ms Subasinghe stated that many international students commute for their studies and that having concessional Opal cards would be appreciated.[12] Ms Mularachchi agreed, noting that:

It has been really stressful for a lot of international students to afford transport within New South Wales, especially for postgrad students who are currently doing their placements and who are required to complete 1,000 hours, at least in my program … As a student assistant, I used to hear from a lot of students how far they had to travel every day and how much they would be spending, especially given that you are not allowed to work during your placement, and you have to complete 400 to 600 hours in a full-time workload.[13]

4.15In addition to the cost-of-living pressures, Mr Shen listed a number of concerns that international students have raised with him, including:

… food security: accessing affordable and safe food options has also been part of a big challenge. Access to health care and other relevant support is another concern. There is a strong need for greater access to Medicare and government provision of health and wellbeing support, especially mental wellbeing supports.[14]

4.16Some participants discussed their experience during the start of the COVID-19 pandemic. Ms Mularachchi stated that she found it really challenging to afford the fees for her study as she was unable to find work from 2019 to 2021. As a result, she went back to her country of origin and stayed there ‘for more than a year because of border closures.’[15] Similarly, Ms Subhasinghe identified ‘paying a great amount of fees for online classes’ as a ‘negative’:

Even now, all of the lectures have online recordings, even though we're paying the same price. Right now, we have in-person labs and tutorials, which is much better. During COVID, it didn't make sense for us to pay a lot, especially for students who had to go back home.[16]

4.17During a roundtable discussion on international education in Freemantle, witnesses discussed the impact of state government policy settings on the cost of living and how this may influence a student’s choice of study destination. In particular, the University of Notre Dame Australia, which has campuses in both Sydney and Perth, attributed the abundance of demand for postgraduate studies in Western Australia to specific state government policy settings:

I think that's supported by the government policy on schooling for dependants. In Western Australia, people who come with dependants get placed in a school and it's at a local rate. That doesn't happen in New South Wales. The other thing that happens in Western Australia is that, rightly so, we give international students the same concession rates as domestic students for public transport. That makes a significant difference. We know in places like New South Wales students are spending $50 plus a week to get to campus.[17]

Student accommodation

4.18Accommodation was identified as a key factor impacting prospective international students’ decisions to choose Australia as a study destination. The International Student Education Agents Association advised that in the context of a ‘strong return’ from international students, it now sees ‘accommodation as a critical issue for students’:

The price of accommodation and the availability of accommodation could be a handbrake on some of the return. The word is already going back into market that Sydney, Melbourne and other places are extremely expensive and it's difficult to get accommodation.[18]

4.19Similarly, Macquarie University considered the issue of accommodation shortage as having ‘the potential to bring everything to an immediate halt’, if students are not able to get accommodation in Australia.[19] The University of Wollongong (UOW) attributed this issue to being a part of ‘a national general accommodation crisis and affordability crisis’:

The issue is not just related to our market; it is broader than that. It impacts us enormously. It is going to be difficult for universities to solve the accommodation issues on their own, given that it is a global issue, and in this sense a nationwide issue.[20]

4.20The ISANA International Education Association (ISANA) were aware of the ‘exploitation of international students in overcrowded housing accommodation’ even prior to COVID-19 pandemic.[21] Sydney University Postgraduate Representative Association (SUPRA) raised serious concerns that international students face both predatory landlords as well as a lack of knowledge of their rights and responsibilities while renting in Australia. SUPRA observed that many international students report a range of concerning experiences that occur both during and after their tenancies, including students:

• who have been pressured into signing leases before seeing the property
• who have been told to pay their bond into the personal accounts of landlords, without the option of lodging their bond with Rental Bonds Online, often before signing the lease, or seeing the property
• who have not been given a contract or condition report at any time during their tenancy
• whose contract violates the Residential Tenancies Act 2010
• who have not been given the correct, or any information about the landlord’s legal name or address, which prevents them from being able to take the landlord to NCAT.[22]

Purpose-built student accommodation

4.21In addition to private rentals and university-owned accommodation, international students can access private purpose-built student accommodation (PBSA) and homestay, as alternative accommodation options. These two alternatives were discussed in depth at the public hearings as both short term and long-term solutions to student accommodation shortages.

4.22Purpose-built student accommodation (PBSA) is ‘an all-inclusive and fully furnished housing option’ exclusively for students, who are enrolled at an education institution to study. It is designed to meet the needs of students, often incorporating features such as retail outlets, communal spaces, study areas and other amenities. PBSA buildings are usually located near education precincts, with adequate access to transport.[23]

4.23ISANA recognised that councils and the cities put a lot of effort at that time into purpose-built accommodation, fast-tracking approvals and building the sector up.ISANA is concerned that almost 10 years later, the purpose-built accommodation sector, which they consider is enormous in Melbourne now, is still not meeting the needs of international students. The price points were noted as being ‘exceptionally high.’[24]

4.24While PBSAs in Australia are usually privately owned and operated, providers have agreements and/or partnerships with universities to provide housing to students.[25] They additionally offer pastoral care to students, including mental health, wellbeing services and study assistance, in collaboration with universities. Recognising that students often stay for a few semesters or years and most for the duration of their studies, PBSAs typically offer semesterly or academic year leases.[26]

4.25The Student Accommodation Council noted that since PBSA is exclusively for students, ‘it provides confidence for young people considering moving to Australia that they will be able to find housing’.[27] They noted that international students living in PBSA are ‘better protected and connected than those in the private rental market, and are less-vulnerable to exploitation by landlords’.[28] As such, the Student Accommodation Council affirmed that ‘a strong supply and availability of PBSA removes barriers to decision-making that might influence’ a prospective international student’s decision to choose Australia as a study destination.[29] The Student Accommodation Council described modern purpose-built student accommodation as usually consisting of communal areas, including gaming areas, gyms and cinema rooms, all of which ‘are created and set up for the best possible environment for the students.’[30]

4.26Advising that current vacancy rates of PBSA in some Australian capital cities are zero, the Student Accommodation Council believed that it was ‘imperative that the supply of PBSA beds grow to accommodate international students and alleviate pressure on the already stressed private rental market’ as international students return.[31]

Encouraging investment in purpose-built student accommodation

4.27As a non-traditional investment category, PBSA is often characterised as an alternative housing asset class and requires investment at the development stage. Both of these factors have contributed to ‘relatively low levels of investment from domestic investors’, such as superannuation funds and investment trusts. Instead, ‘Australia’s PBSA sector has traditionally relied on foreign investment’ capital, which has enabled the sector’s strong growth over the past decade.[32] The Student Accommodation Council argued that there is ‘an undersupply in Australia of purpose-built student accommodation’ when compared to competitor markets, such as Canada, the UK and the US.[33]

4.28High fees and charges were identified as a disincentive for further investment in Australia’s PBSA sector. The Student Accommodation Council observed that investors are subject to a number of fees, regulations and charges, including foreign owner stamp duty charges, land tax surcharges which are complex and vary by jurisdiction, as well as high Foreign Investment Review Board (FIRB) fees. By way of example, the Student Accommodation Council demonstrated how FIRB fees can vary according to whether a PBSA development is designated for a particular university:

… if PBSA developments are not specifically designated for a particular university, they are charged residential FIRB fees rather than commercial FIRB fees. This can effectively increase fees almost a hundred-fold, the FIRB transaction fees for a $50 million residential property are over $1 million, but just $13,200 for a commercial property.[34]

4.29The Student Accommodation Council believed that ‘exempting the PBSA sector from foreign-owned land tax and stamp duty surcharges’ and having consistent tax policies across states and territories would assist in encouraging further investment in the sector.[35] The Student Accommodation Council described the current environment that the PBSA sector is operating in as ‘a patchwork quilt of fees, regulations and charges’ that its ‘members spend all their time trying to decipher.’[36]

4.30In relation to reduced domestic investment in the sector, the Student Accommodation Council believed that ‘lifting the national understanding of PBSA … will enable growth in domestic investment and help the sector establish itself as a mature asset class in the Australian property sector.’ In particular, the Student Accommodation Council advocated for a unified classification of PBSA as an asset class, which clearly defines the sector.[37]

4.31Given that PBSA is largely recognised as an alternative housing asset, the Student Accommodation Council advised that Australian capital and, in particular superfunds, are subject to ‘all the restraints around alternative capital that they are allowed to invest in.’

4.32Student Accommodation Council commented that lack of understanding around the asset means that PBSA is perceived to be of a higher risk class.

If it were understood as a sector and it were moved out of the risky alternatives, that would unlock, potentially, the super funds, who are sitting there. We do behave like the residential sector because we're long-term landowners and holders. We don't sell. It's an annuity asset.[38]

4.33In this way, a greater understanding of PBSA and efforts to change the perception of it being considered risky alternatives would make investments in the sector from superfunds more likely.[39]

4.34The Student Accommodation Council observed that ‘Australian super funds invest in PBSA internationally, but they don't invest in PBSA in Australia.’[40]

4.35Student Accommodation Council believed there is a leadership role the federal government needs to play, in understanding that the growth of this asset class will take students out of the private rental market and add to supply. We need to incentivise the growth of this asset class.[41]

Homestay

4.36The Committee heard evidence of homestay as viable alternative accommodation for international students. Homestay describes a type of accommodation arrangement provided to a student studying or training at an Australian education institution. Under this arrangement, students live with a locally-based individual, couple or family, known as ‘the host’. Students are provided with their own room and have access to other household facilities.[42]

4.37The University of New South Wales (UNSW) identified homestay as being a solution to manage the current accommodation shortage faced by higher education institutions, noting that:

Homestay is a wonderful, wonderful thing for the students and often for the families or empty nesters ... Australians embrace this …There are risks, of course. We are very cognisant of that, because not every home is going to be identical, obviously. But it's a wonderful thing and it works, largely.[43]

4.38In Griffith University’s view, homestay can enhance the student experience and create opportunities for accommodation that don't take housing in the private rental market away from other Australians:

Sharing a house with an Australian of course is a great way to meet ordinary Australians. It helps with the housing crisis, and it also helps people in Australia to feel a more personal connection with international students rather than perhaps just seeing them in large statistical terms, and to understand some of the individuals, their struggles and things their families might have gone through to send them here … It's about trying to make sure that our classrooms, student societies and campuses have a greater integration between international and domestic students.[44]

4.39While agreeing that homestay is a great alternative to student accommodation, Macquarie University observed that ‘homestay was impacted during COVID’. They advised that ‘a lot of families previously taking advantage of [homestay] have pulled out’ and that further promotion is needed to encourage ‘families to want to open their homes again.’[45]

4.40MyStay International held the view that homestay was the only viable solution to managing the current student accommodation shortage in the short-term. By way of example, they pointed to how homestay eased the pressures of student accommodation shortages in Perth:

During the severe shortage of accommodation in semester 1 [of 2023] we worked with the Western Australian government and four of the main universities in Perth. They used their own resources to help promote hosting and diverted those hosts to us. This resulted in 500 new host applications in Perth, and during that first semester, every single student application we received we were able to make. We wouldn't have been able to do that without the resources of the universities and the government promoting the opportunity.[46]

4.41Similarly, Study Gold Coast and the City of Gold Coast partnered together to launch the ‘Host for the Coast’ campaign in January 2023. By May 2023, the campaign received 385 expressions of interest across the Gold Coast, with many hosts willing to offer more than one bed. Study Gold Coast has estimated that the campaign had unlocked approximately 500 beds for international students.[47]

4.42MyStay International highlighted the need for further promotion of homestay opportunities, including advertising the tax-free status of hosting an international student.[54] According to the Australian Tax Office Interpretative Decision ID 2001/381, the amount of rent received by a taxpayer for up to two international students under a homestay arrangement is not considered assessable income under section 6-5 of the Income Tax Assessment Act 1997.[55]

4.43Further, MyStay International believed that referring to homestay as hosted accommodation will assist in marketing this alternative housing option to higher education international students, as MyStay felt that the term homestay is perceived as being associated with students under the age of 18 years old.[56]

4.44International students under the age of 18 in Australia must have approved accommodation and welfare arrangements in place before a student visa can be issued and regulated by the Australian government to ensure student safety and wellbeing. There are less controls for international student over 18, the necessity of a strong oversight and control of broader homestay arrangements for over 18 international students will be critical. Ms Joy Xu, an international student, shared her experience living in a homestay arrangement, when she first arrived in Australia in 2014. She described it as ‘really lovely at the beginning’:

… but, following that, they started to borrow money from me. They were treating me so nicely and were so friendly, so I felt that it was okay to help them out. But it came to be a pattern of behaviour and, when I stopped allowing them to borrow money, their attitude changed. After that, I moved out.[57]

4.45It was Ms Xu’s view that universities and colleges have a certain responsibility to review a host’s eligibility to engage in a homestay arrangement. Reflecting on her experience, Ms Xu stated that if hosts are providing accommodation mainly for financial reasons, 'that will put international students at certain risk.’ However, if the intention of hosts are to support the genuine cultural integration of international students then it is ‘a great thing and should be continued.’[58]

4.46MyStay International advocated for independent national standards to be implemented to protect international students from exploitation during the accommodation shortage.[59] MyStay listed a number of minimum standards that they believed should be implemented, including ‘compulsory host background checks, host room checks and host training for approved host families’.[60]

Student accommodation in regional Australia

4.47Witnesses raised the difficulties in investing in student accommodation in regional Australia. UOW had been advised that accommodation developers generally avoid building accommodation in regional areas as they see ‘too much risk’ in this market:

They are always looking for opportunities to re-do something in metropolitan areas; however, regional areas miss out. It is a shame. Wollongong is only an hour and 20 minutes away. We've got plenty of land to build student accommodation on. It's an issue that could require government support.[61]

4.48The Student Accommodation Council observed that international investors looking to develop PBSA in Australia consider the gateway cities of Sydney and Melbourne first. Second-tier cities such as Brisbane, Adelaide, Canberra and Perth are then considered.[62] To make an investment case for PBSA in regional Australia, a large number of international students are needed, given that ‘they make up 80 per cent’ of PBSA residents.[63] The Student Accommodation Council stated that ‘traditionally there hasn't been that strong supply of international students at regional universities.’ Acknowledging that this is changing, the Student Accommodation Council listed supply dynamics, planning restrictions, building costs as some of the factors determining the viability of an investment case. Comparatively, CBD areas have a ‘proven operating asset class.’[64]

4.49Given the nature of lease agreements for PBSA, the Student Accommodation Council additionally raised that PBSA assets are empty during the December to February period as it is restricted to only letting to students. The Student Accommodation Council stated that in this context the ‘capital and investment case [in regional areas] just doesn’t stack up.’[65]

4.50MyStay International viewed homestay as the only short-term solution for managing the shortage of student accommodation regional Australia. MyStay believed that promoting homestay hosting opportunities is easier in regional cities, as communities in these areas are more engaged in local communication through newspapers and local radio talkback.[66]

…the newspaper runs your story and everyone reads the newspaper. They're more intent in communication, they listen to the radio, the local talkbacks et cetera. We see the hosted accommodation solution being done properly and not being referred to as homestay, as it still carries an under-18 attachment to it. We want to get to the over-18s. Regional is a very fast way to solve the problem with hosted accommodation in regions.[67]

4.51MyStay International indicated that a successful method of promoting hosting an international student has been when education providers have reached out to parents of former domestic students. This was confirmed to be the most responsive way to advertise homestay hosting opportunities. In the context of regional areas, MyStay International informed that they work with the international student needing accommodation, the government and local council to promote it widely.[68]

Safety and welfare

4.52Sydney University Postgraduate Representative Association (SUPRA) discussed types of racism and discrimination that international students face both on and off campus, both before, during and after COVID-19. These experiences not only affect the wellbeing, safety and security of international students, but also negatively affects the desirability of Australia as a location for education and migration.[69]

4.53SUPRA related a case study where a student began to receive racist messages from a classmate via the Zoom chat function during online lectures while in lockdown. This student raised the issue with their tutor, but the chat had not been saved. This issue began to occur repeatedly to the point where the student could not participate in class. The student had to receive special permission to watch the lecture recordings instead of attending the Zoom classes live.[70]

4.54Further, the Committee heard that some international students were not aware of the supports and access to legal rights when confronted with racism and illegal activity. For example, Ms Xu, an international student from UTS recalled an incident when her phone, laptop and money was stolen, noting that she did not know anything about the outcomes of the police investigation:

I didn't know much about my legal rights and how I could navigate myself in that situation. I felt vulnerable at the time, because I knew this was not a safe place anymore. I didn't know the whole process of applying for another homestay; it would have been too complicated for me. I chose to stay there after that …[71]

4.55Ms Xu recounted on another experience in which she was robbed by a group of teenagers and her phone was stolen. When she told police that she was able to track the exact location of her phone using the ‘find my iPhone’ app, they did not do anything. Ms Xu stated that at the time, she didn’t know the process of an investigation:

I felt as though I had little support with that. I don't know whether universities have such support available as well, so I had to recover by myself, talk to my family, and that thing just passed. That could be addressed in a better way and for there to be a better approach.[72]

4.56Reflecting on these experiences, Ms Xu reiterated the need for all international students to be informed about their legal rights, the supports they have access to and where they can go for assistance when similar incidents occur. She held the view that ‘promotion and information are really essential.’ Ms Xu praised the work of her university in this area, explaining that she appreciates seeing regular communication through email about safety, seeking help and who she can speak to about different issues.[73]

Connection to and integration into Australia

4.57International students expressed interest in contributing to the Australian community whilst studying in Australia. For example, Ms Katja Strehle, a fourth-year PHD student at Western Sydney University, stated that she ‘would like to give back to the community, because there has been a lot of economic investment in me and my research.’[74]

4.58Ms Xu noted that ‘apart from studying, I have been actively involved in community service, politics and the university movement’:

I am currently a strategic campaigner in the gig economy at the Transport Workers Union. I have been a previous organiser for the Labor Party and a digital mentor at the UTS Centre for Social Justice & Inclusion, teaching the ageing population about their digital devices and needs during COVID, to help them to get through isolation periods during COVID. I also officially started my term as an international student officer at the UTS Students' Association earlier this year.[75]

4.59Professor Hawke, School of Rural Health Dubbo/Orange, highlighted the many benefits that international students bring to regional areas, including adding ‘cultural diversity of our cohorts … they provide social and economic benefits to our communities, and they help the university meet delivery costs. Many show a strong interest in working in rural areas after graduation. Over 40 per cent of doctors in Dubbo are overseas trained.’[76]

Regional universities

4.60An issue that occurred frequently throughout the inquiry with respect to student experience was the dilemma regarding international education in regional areas. Regional communities offer exceptional student experience and employment opportunities and make a terrific contribution to regional campuses and communities. However despite efforts by successive governments it has proven very difficult to attract students to study in regional areas in significant quantities.

4.61Evidence received indicated this is because the young people coming to Australia to study are seeking to live in metropolitan areas and there is little that government policy can do to change these market preferences. Incentives to study in regional areas have proven to have relatively modest impacts.

4.62Professor Catherine Hawke ,School of Rural Health Dubbo/Orange, discussed some of the barriers for bringing international students to the regions.

Unfortunately, despite a strong desire, very few international students join our rural programs. There are various barriers to their participation, including policy and capacity. In short, the Commonwealth department of health does not strongly support international students completing rural clinical placements. The department's policy is that overseas students may not benefit directly from its funding, overseas students should only be offered places if they're not filled by domestic students, and universities cannot count international student completions towards their performance reporting.[77]

4.63Professor Hawke suggested the following changes needed to be made to assist in bring international students to regional areas:

Increasing the numbers of international students would require steps like: a change of policy from the Commonwealth Department of Health; a long-term strategy initially focusing on expanding rural placement capacity; providing more affordable accommodation for all health students and creating part-time employment opportunities for them; a whole-of-government approach from the Commonwealth to align health, education, tourism and visa policies et cetera; and a deep partnership approach between the Commonwealth, the states and the territories with rural communities, local health services and universities.[78]

Regional universities with metropolitan campuses

4.64One of the consequences of the difficulty for regional universities, as well as lower ranked metropolitan universities in recruiting international students is they may be disadvantaged in their ability to generate income from international education. In turn, this has driven many institutions to establish a footprint in metropolitan CBDs to recruit international students and generate revenue. Teaching on these campuses is often subcontracted to private providers. The quality of the student experience in these circumstances where the overwhelming majority of students are international housed in CBD office buildings is questionable however these universities seem forced to compete and chase revenue using this model.

4.65The Central Queensland University (CQUniversity) was a good example of being a regional university with metropolitan campuses. CQUniversity informed the Committee it has six campuses in regional Queensland and three capital city campuses in Sydney, Melbourne and Brisbane. The Committee was interested to know what was driving the demand for these metropolitan campuses. CQUniversity commented the students:

… have a social network in Melbourne, and therefore with the cost of living pressures and the ability to have a social network, they are driven to having a predisposition to choose to study in Melbourne, but they do want a Central Queensland University degree.[79]

Committee Comment

4.66The study experience of international students has a substantial impact on Australia’s overall reputation, including its position as a high-quality higher education provider. In order to remain competitive with other countries, Australia must deliver a world class education accompanied by a positive student experience.

4.67Relatively high cost of living and the availability of affordable housing were some of the factors prominently raised as negatively affecting the experience of international students studying in Australia. These factors of course are issues right across the Australian community at present given the cost of living crisis confronting developed economies post-COVID and the Committee is concerned that international students are not unfairly scapegoated or blamed for broader pressures in the housing market. In aggregate, international students add enormously to Australia and their contribution to housing demand is modest as compared to the population at large, noting also the contribution of Purpose Built Student Accommodation to meeting demand. If the government adopts the Committee’s suggested focus on ‘quality not quantity’ outlined in Chapter 1 and the suggestions elsewhere in this report that prompted a decrease in the overall number of international students in the lower end of the VET market coupled with an increase of home-stay and PBSA of course that may have a minor impact in moderating housing market pressures in some locations.

4.68The Committee is concerned to hear that many international students compromised their safety to find affordable housing. The Committee is aware that in this context, the lack of travel concessions and more generally the high costs of living in most Australian capital cities, adds further financial pressure for international students. The Committee considers that state and territory governments should commit to introducing equitable travel concessions for international students. The most cost‑effective way to do this is likely to be to build it in as a policy requirement when next public transport services are tendered and contracted which will take years to achieve but a commitment to reform is warranted.

4.69Regional Australia can offer an exceptional student experience and employment opportunities. The Committee acknowledges evidence that many young people seek study and work at an early stage of their lives in major cities and that there are consequently real limitations to what can be done by governments given fundamental consumer choices. The Australian Government should consider what further promotion of regional study may be possible and additional incentives to encourage students to study in regional areas.

4.70Outside of the private rental market and accommodation owned by higher education providers, PBSA and homestay are alternative forms of accommodation available to international students. In relation to PBSA, the Committee understands that this type of accommodation is designed to meet the needs of international students, including through the spaces built to encourage study and socialising. PBSA is often conveniently located near the education institution, which means transportation costs are lowered and it offers pastoral support, making it a desirable option for international students new to Australia.

4.71The Committee is surprised to hear evidence of the exceptionally low level of domestic investment in the PBSA sector. Perversely, Australian superfunds invest in PBSA in overseas but not in Australia. The Committee’s is persuaded by evidence received that this reduced domestic investment strongly influenced by the complex and irrational tax treatment of PBSA across jurisdictions, as well as the general classification of PBSA as an ‘alternative’ asset class which assigns a higher risk profile thus deterring domestic institutional investors (especially superfunds). This is a complex issue beyond the Committee’s competence to make specific recommendations to solve, hence a further review of the asset class classification of PBSA and the interactions with the tax system is recommended, probably best led by Treasury. This review should consider changes to FIRB assessment responding to the evidence outlined above. A Treasury led review will assist the Australian Government in better understanding what incentives are needed to boost domestic investment in the PBSA sector.

4.72The Committee considers that Homestay can play a larger role in providing alternative accommodation options. Homestay can provide additional capacity for international students relieving a small amount of demand on the private housing market; provide a more authentic Australian experience for students; and provide tax-free income to Australians with a spare room or two. In reaching this conclusion the Committee acknowledges that Homestay is not a silver bullet, and that vulnerability, safety and risks of exploitation need to be managed. The Committee echoes the views of MyStay International that independent nationally consistent Homestay standards would help to protect international students. The Committee commends the success of the ‘Host for the Coast’ program and considers that reviewing this program would provide insights and assist in building a robust, national homestay model that States, Territories and local governments could choose to adopt and promote.

4.73International students add to the multicultural richness of many communities across Australia. In addition to the knowledge and diverse perspectives they bring, it is clear that they actively contribute to the community that they stay with while studying in Australia. The Commonwealth Government cannot however be responsible for all aspects of the student experience and the Committee considers that greater clarity is needed between all levels of government regarding the lead roles and responsibilities for enhancing Australia’s student experience. In particular, State and Territory governments and local governments (with leadership from Capital City Lord Mayors) should lead efforts to foster greater inclusion of international students in Australian communities and society and send leadership signals that international students are welcome and valued.

4.74The Committee acknowledges concerns regarding the desirability of the widespread practice in the university sector whereby universities establish CBD campuses largely comprised of international students and sub-contract the teaching to private institutions. This appears to be driven primarily by universities unable to recruit significant numbers of students to their campuses due to location not meeting market preferences. The issue could be considered as part of the University Accord process and may warrant adjustments to funding formulas to ensure genuine regional universities in particular are adequately funded and not forced in effect to chase revenue in this manner, as there are serious questions regarding the quality of the student experience and desirability of public universities contracting teaching of substantive courses to private providers in large volumes.

4.75The Committee recommends the Government develop an International Education Compact for the endorsement of National Cabinet, to clarify the roles and responsibilities of respective levels of government regarding the quality and integrity standards of Australia’s international education system and to improve international student experience. Such responsibilities, for example, may confirm:

• the Federal Government has lead responsibility for visa policy and processing, quality regulation (with states and territories referring Vocational Education and Training (VET) regulatory powers where necessary), agent regulation, leading the international marketing of Australian education (in collaboration with states and territories), consumer protection (including tuition protection schemes) and prevention of workplace exploitation for students
• state and territory governments have lead responsibility for domestic transport including committing to uniform public transport concessions, accommodation, student welfare, community integration measures such as volunteering and participation in Australian community life and celebrating the contribution that international students make to Australian society, and destination marketing in collaboration with the Commonwealth
• local council mayors have a special leadership role in fostering a culture of welcoming students into Australian communities and championing community inclusion
• a proposal that the Governor-General, State Governors and Territory Administrators host an annual reception with leading international students or sector and civic awards to recognise the contribution that international students make to Australia and champion greater community inclusion
• shared responsibility to support the Council of International Students Australia (CISA) and similar international student organisations to build their capabilities as a support and resource bridge between domestic and international students, and for new international students to acclimatise to Australian life.

4.76The Committee recommends the Government use its convening power to encourage state and territory governments, local government authorities and universities to develop appropriate local accommodation models including home stay in their respective jurisdictions to help alleviate pressing student accommodation issues and deepen connections between international students and Australian society, highlighting the tax advantages for Australians who host up to two international students.

Best Practice Home Stay models should be informed by the Gold Coast Council's ‘Host for Coast’ program and developed in consultation with established reputable homestay organisations such as the Australian Homestay Network and international education peak bodies and include:

• formal eligibility review processes and ongoing quality assurance
• strong risk management focus in the lower end of the education provider market to prevent accommodation exploitation, and forms of worker exploitation such as rental debt bondage
• focus on home stay opportunities that support providers and communities in regional Australia
• a specific focus on home stay support for (domestic and international student) regional placements.

4.77The Committee recommends the Government urgently work to foster the expansion of the Purpose-Built Student Accommodation (PBSA) sector including:

• examining mechanisms to boost domestic and superannuation fund investment into PBSA (as the majority of capital invested at present is foreign) including support for a new asset class of PBSA, recognising that it is now a mature and specialist housing product
• engaging with state, territory and local governments to remove planning and development impediments to PBSA developments
• working with regional universities and considering incentives to support PBSA developments in regional Australia.

4.78The Committee recommends the Government review and consider the desirability of the widespread practice in the university sector whereby universities establish Central Business District (CBD) campuses largely comprising international students and sub-contract the teaching to private institutions. This could be considered as part of the University Accord process and may warrant adjustments to funding formulas to ensure genuine regional universities in particular are adequately funded and not forced in effect to chase revenue in this manner.

Footnotes

[1]Regional Universities Network (RUN), Submission 26, p. 6.

[2]Ms Lee-ann Norris, Chief Student Recruitment Officer, Global and Domestic, Macquarie University, Committee Hansard, Sydney, 2 March 2023, p. 1.

[3]Ms Kirsten Andrews, Vice-President, External Engagement, University of Sydney, Committee Hansard, Sydney, 2 March 2023, p. 3.

[4]Mr David Harrison, Pro-Vice-Chancellor, Communications and Engagement, University of Notre Dame Australia, Committee Hansard, Freemantle, 22 August 2023, p. 12.

[5]Department of Education, Submission 43, p. 6.

[6]Department of Education, Submission 43, p. 6.

[7]Council of Australian Postgraduate Associations (CAPA) and National Aboriginal and Torres Strait Islander Postgraduate Association (NATSIPA) Submission 52, p.4.

[8]Ms Inuli Subasinghe, Student Casual, University of New South Wales (UNSW) Committee Hansard, Sydney, 2 March 2023, p. 23.

[9]Mr Yinfeng (Benny) Shen, Fellow of the Senate, University of Sydney, Committee Hansard, Sydney, 2 March 2023, p. 25.

[10]Ms Samanda Mularachchi, Student, Western Sydney University, Committee Hansard, Sydney, 2 March 2023, p. 26.

[11]Ms Mularachchi, Western Sydney University, Committee Hansard, Sydney, 2 March 2023, p. 26.

[12]Ms Subasinghe, UNSW, Committee Hansard, Sydney, 2 March 2023, p. 23.

[13]Ms Mularachchi, Western Sydney University, Committee Hansard, Sydney, 2 March 2023, p. 23.

[14]Mr Yinfeng (Benny) Shen, Fellow of the Senate, University of Sydney, Committee Hansard, Sydney, 2 March 2023, p. 22.

[15]Ms Mularachchi, Western Sydney University, Committee Hansard, Sydney, 2 March 2023, p. 24.

[16]Ms Subasinghe, UNSW, Committee Hansard, Sydney, 2 March 2023, p. 25.

[17]Mr Justin de Sousa, Director, International, University of Notre Dame Australia, Committee Hansard, Freemantle, 22 August 2023, p. 6.

[18]Mr Robert Parsonson, Executive Officer, International Student Education Agents Association, Committee Hansard, Melbourne, 18 April 2023, p. 55.

[19]Ms Norris, Macquarie University, Committee Hansard, Sydney, 2 March 2023, p. 5.

[20]Professor Alex Frino, Senior Deputy Vice-Chancellor, Innovation, Enterprise and External Relations, University of Wollongong (UOW), Committee Hansard, Sydney, 2 March 2023, p. 5.

[21]Ms Danielle Hartridge¸ Vice President, Professional Development, ISANA International Education Association (ISANA), Committee Hansard, Melbourne19 April 2023, p. 11.

[22]Sydney University Postgraduate Representative Association (SUPRA), Submission 86, p. 5.

[23]Student Accommodation Council – Property Council of Australia, Submission 49 (Attachment), p. 5.

[24]Ms Hartridge, ISANA, Committee Hansard, Melbourne, 18 April 2023, p. 11.

[25]Student Accommodation Council – Property Council of Australia, Submission 49 (Attachment), p. 9.

[26]Student Accommodation Council – Property Council of Australia, Submission 49 (Attachment), p. 9.

[27]Student Accommodation Council – Property Council of Australia, Submission 49, p. 6.

[28]Student Accommodation Council – Property Council of Australia, Submission 49, p. 7.

[29]Student Accommodation Council – Property Council of Australia, Submission 49, p. 6.

[30]Ms Anouk Darling, President, Student Accommodation Council, Property Council of Australia, Committee Hansard, Melbourne, 19 April 2023, p. 16.

[31]Student Accommodation Council – Property Council of Australia, Submission 49, p. 7.

[32]Student Accommodation Council – Property Council of Australia, Submission 49, p. 7.

[33]Ms Torie Brown, Executive Director, Student Accommodation Council, Property Council of Australia, Committee Hansard, Melbourne, 19 April 2023, p. 16.

[34]Student Accommodation Council – Property Council of Australia, Submission 49, p. 7.

[35]Student Accommodation Council – Property Council of Australia, Submission 49, p. 7.

[36]Ms Brown, Student Accommodation Council, Property Council of Australia, Committee Hansard, Melbourne, 19 April 2023, p. 16.

[37]Student Accommodation Council – Property Council of Australia, Submission 49, p. 7.

[38]Ms Darling, Student Accommodation Council, Property Council of Australia, Committee Hansard, Melbourne, 19 April 2023, p. 16.

[39]Ms Darling, Student Accommodation Council, Property Council of Australia, Committee Hansard, Melbourne, 19 April 2023, p. 16.

[40]Ms Darling, Student Accommodation Council, Property Council of Australia, Committee Hansard, Melbourne, 19 April 2023, p. 16.

[41]Ms Darling, Student Accommodation Council, Property Council of Australia, Committee Hansard, Melbourne, 19 April 2023, p. 16.

[42]Study Gold Coast, Submission 96, p. 1.

[43]Professor Merlin Crossley, Deputy Vice-Chancellor Academic Quality, University of New South Wales, Committee Hansard, Sydney, 2 March 2023, p. 11.

[44]Dr Carolyn Evans, Vice-Chancellor and President, Griffith University, Committee Hansard, Canberra, 15 May 2023, p. 63.

[45]Ms Norris, Macquarie University, Committee Hansard, Sydney, 2 March 2023, p. 12.

[46]Mr David Bycroft, Founder and Chief Business Development Officer, MyStay International, Committee Hansard, Melbourne, 19 April 2023, p. 13.

[47]Study Gold Coast, Submission 96, pages 1-2.

[48]Study Gold Coast, Submission 96, p. 1.

[49]Study Gold Coast, Submission 96, p. 2.

[50]Study Gold Coast, Submission 96, p. 2.

[51]Ms Jennine Tax, Acting Chief Executive Officer, Study Gold Coast Committee Hansard, Gold Coast, 17 May 2023, p. 13.

[52]Ms Tax, Study Gold Coast Committee Hansard, Gold Coast, 17 May 2023, p. 13.

[53]Ms Tax, Study Gold Coast Committee Hansard, Gold Coast, 17 May 2023, p. 13.

[54]Mr Bycroft, MyStay International, Committee Hansard, Melbourne, 19 April 2023, p. 13.

[55]www.ato.gov.au/law/view/document?docid=AID/AID2001381/00001 viewed 10 August 2023.

[56]Mr Bycroft, MyStay International, Committee Hansard, Melbourne, 19 April 2023, p. 13.

[57]Ms Joy (Jiacong) Xu, International Student Officer 2023, University of Technology Sydney (UTS), Committee Hansard, Sydney, 2 March 2023, p. 26.

[58]Ms Xu, UTS, Committee Hansard, Sydney, 2 March 2023, p. 26.

[59]Mr Bycroft, MyStay International, Committee Hansard, Melbourne, 19 April 2023, p. 13.

[60]MyStay International, Submission 102, p. 4.

[61]Professor Frino, UOW, Committee Hansard, 2 March 2023, p. 12.

[62]Ms Darling, Student Accommodation Council, Property Council of Australia, Committee Hansard, Melbourne, 19 April 2023, p. 14.

[63]Ms Brown, Student Accommodation Council, Property Council of Australia, Committee Hansard, Melbourne, 19 April 2023, p. 14.

[64]Ms Darling, Student Accommodation Council, Property Council of Australia, Committee Hansard, Melbourne, 19 April 2023, p. 14.

[65]Ms Darling, Student Accommodation Council, Property Council of Australia, Committee Hansard, Melbourne, 19 April 2023, p. 14.

[66]Mr Bycroft, MyStay International, Committee Hansard, Melbourne, 19 April 2023, p. 15.

[67]Mr Bycroft, MyStay International, Committee Hansard, Melbourne, 19 April 2023, p. 15.

[68]Mr Bycroft, MyStay International, Committee Hansard, Melbourne, 19 April 2023, p. 15.

[69]SUPRA, Submission 86, p. 7.

[70]SUPRA, Submission 86, p. 8.

[71]Ms Xu, UTS, Committee Hansard, Sydney, 2 March 2023, p. 27.

[72]Ms Xu, UTS, Committee Hansard, Sydney, 2 March 2023, p. 27.

[73]Ms Xu, UTS, Committee Hansard, Sydney, 2 March 2023, p. 27.

[74]Ms Katja Strehle, International Student, Western Sydney University, Committee Hansard, Sydney, 2 March 2023, p. 23.

[75]Ms Xu, UTS, Committee Hansard, Sydney, 2 March 2023, pages 22-23.

[76]Professor Catherine Hawke, Head of Clinical School, School of Rural Health Dubbo/Orange, University of Sydney, Committee Hansard, Orange, 26 June 2023, p. 1.

[77]Professor Catherine Hawke, Head of Clinical School, School of Rural Health Dubbo/Orange, University of Sydney, Committee Hansard, Orange, 26 June 2023, p. 1.

[78]Professor Catherine Hawke, Head of Clinical School, School of Rural Health Dubbo/Orange, University of Sydney, Committee Hansard, Orange, 26 June 2023, p. 1.

[79]Mr Shehan, Thampapillai, International Director, Central Queensland University, Committee Hansard, Cairns, 15 August 2023, p. 6.